Current Mortgage Rates -- July 21, 2021: Rates Fall for Fixed-Rate Loans

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It pays to keep tabs on trends in average mortgage rates if you're thinking about purchasing a property.

On July 21, 2021, average mortgage rates are down for fixed-rate loans. Check out today's average rates to see if it's a good time for you to apply for a loan to purchase a new home:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 3.058%
20-year fixed mortgage 2.805%
15-year fixed mortgage 2.373%
5/1 ARM 3.131%

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage rates

The average 30-year mortgage rate today is 3.058%, down 0.03% from yesterday's average of 3.088%. At today's average rate, you'd pay $425 per month in principal and interest per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $52,906 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.805%, down 0.054% from yesterday's average of 2.859%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $545. You'd be looking at total interest costs of $30,773 per $100,000 in mortgage debt over the life of the loan.

Interest doesn't cost as much with this loan as with the 30-year loan because of the lower rate and the shorter payoff time. But since you are making so few payments, each individual payment has to be higher -- even with the reduced rate.

15-year mortgage rates

The average 15-year mortgage rate today is 2.373%, down 0.018% from yesterday's average of 2.391%. A loan at today's average rate would come with a monthly principal and interest payment of $661 per $100,000 borrowed. You'd be looking at total interest costs of $18,949 per $100,000 in mortgage debt over the life of the loan.

The 15-year loan also has a lower interest rate and lower total interest costs than either of the two loans with longer terms. But of course since you're cutting payment time by so much, each monthly payment has to be higher.

5/1 ARMs

The average 5/1 ARM rate is 3.131%, up 0.091% from yesterday's average of 3.040%. This is lower than the starting rate on a 30-year fixed-rate loan, but while the rate is guaranteed for the life of the fixed-rate loan, it can adjust after five years with the 5/1 ARM. Think carefully about whether you're OK with taking the chance of it adjusting up.

Should I lock my mortgage rate now?

A mortgage rate lock guarantees you a certain interest rate for a specified period of time -- usually 30 days, but you may be able to secure your rate for up to 60 days. You'll generally pay a fee to lock in your mortgage rate, but that way, you're protected in case rates climb between now and when you actually close on your mortgage.

If you plan to close on your home within the next 30 days, then it pays to lock in your mortgage rate based on today's rates -- especially since they're so competitive. But if your closing is more than 30 days away, you may want to choose a floating rate lock instead for what will usually be a higher fee, but one that could save you money in the long run. A floating rate lock lets you secure a lower rate on your mortgage if rates fall prior to your closing, and while today's rates are still quite low, we don't know if rates will go up or down over the next few months. As such, it pays to:

  • LOCK if closing in 7 days
  • LOCK if closing in 15 days
  • LOCK if closing in 30 days
  • FLOAT if closing in 45 days
  • FLOAT if closing in 60 days

To find out what rates are available to you, compare rates from at least three of the best mortgage lenders before locking in.

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